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Inverse Floater
What Does Inverse Floater Mean?
A bond or other type of debt whose coupon rate has an inverse relationship to short-term interest rates.
Investopedia explains Inverse Floater
With an inverse floater, as interest rates rise, the coupon rate falls. When short-term interest rates fall, an inverse floater holder benefits in two ways:
1) The bond appreciates in price
2) The yield increases
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